Singapore Property News This Week #228

Residential

August completed condo prices down by 0.6%

According to the Singapore Residential Price Index (SRPI) by the National University of Singapore (NUS), the prices of completed condos and apartments fell by 0.6% in August from July. Ong Kah Seng from R’ST Research said that the price drops for non-shoebox units were because investor interest for completed properties tends to be seasonally weak in H2 as expatriates’ inflow and leasing activity slows. According to NUS, the sub-index had fallen by 0.7% and 0.5% in the central region and the non-central region respectively in August from July. Ong predicts that the prices of completed properties in the non-central region will fall further as the number of condos in the suburban region is expected to increase.

(Source: Business Times)

Overall private home price index falls by 1.3% in Q3

Following a 0.9% fall in Q2, the overall private home price index has fallen by 1.3% in Q3 from the previous quarter—the biggest quarterly drop since Q3 2013. Year-on-year, the index has fallen by 4.2%. Ong Teck Hui from JLL said that since cooling measures may not be eased anytime soon, sellers may be more eager to sell before prices drop further. This could have resulted in the sharp decline in private home prices in Q3. According to URA’s flash estimates, the prices of non-landed private homes outside central region, rest of central region and core central region had fallen by 1.6%, 1.5% and 1.3% respectively in Q3 from the previous quarter.

(Source: Business Times)

Redhill and Sembawang plots up for tender

Designed for private housing development with commercial use on the first storey, a site at Redhill is expected to draw strong interest in its tender. The 0.84 ha plot may be developed into 400 private homes under the H2 2015 Government Land Sales Programme. Under the reserve list, a 0.7 ha plot at Sembawang will also be put up for tender. That site is expected to yield 115 private homes. Desmond Sim from CBRE believes that the size of both plots presents developers a relatively affordable lump-sum quantum. As such, they are expected to attract at least 10 bidders each.

(Source: Business Times)

Phase 2 of Greenwood Mews launched for sale

Greenwood Mews is a 103-year old leasehold development that features 62 cluster landed homes located at Bukit Timah. Phase 2 of the development has been launched and a discount will be offered to the first 5 buyers. Prices for the 10 units launched start from $3.75 million for a 3,100 sq ft unit, after discount. Shaw Lay See from Far East Organisation believes that residents of the estate will get to enjoy a number of lifestyle and recreational offerings in the Bukit Timah precinct.

(Source: Business Times)

High-end private home sales increased by 17.7% year-on-year in first 7 months

According to an analysis by Savills Singapore, the number of private homes that were sold above $3 million in the first 7 months of this year had increased by 17.7% to 659 units from the same period last year. On the other hand, the number of private homes sold at prices below $3 million remained almost unchanged. Ong Choon Fah from DTZ said that HDB upgraders are more price-sensitive and thus may have delayed their upgrading decision in anticipation of lower condo prices. This could have resulted in the flat year-on-year growth in the number of private homes transacted in the $3 million and below category in the first 7 months this year. On the other hand, the increase in high-end private home sales could have been due to a sharp the fall in property prices, said Alan Cheong from Savills.

(Source: Business Times)

Commercial

Prime retail rents lowest since 2006

The average prime first-storey retail rent has fallen by 3.7% quarter-on-quarter and 4.5% year-on-year to $30.90 psf in Q3 this year. Not only so, the average monthly rent from July to September has been the lowest since Q1 2006. Market experts believe that the fall in rents was due to weaker consumer sentiments and slower retail sales. Rents in the other city areas outside Orchard Road took the sharpest decline with a 4.5% quarter-on-quarter fall to $22.10 psf in Q3 this year. On the other hand, the average prime first-storey rents in the Orchard Road area was down by 3.5% quarter-on-quarter in the same period. According to Lee Nai Jia from DTZ, more than 4 million sq ft of retail space is expected to be released from 2015 to 2019 in the suburban areas. This will likely increase competition for malls in that area and thus affect the rental market.

(Source: Business Times)

Property auction market more than doubles in Q3 from Q2

According to JLL, auction deals worth $27.6 million were completed in Q3 this year. This more than doubles the $10 million recorded in Q2. Mok Sze Sze from JLL said that interest in the auction market has been picking up. In Q3, JLL had closed the sales of 10 units—this was up from the 5 units that were sold in Q2 at auctions. All 10 properties were new listings.

(Source: Business Times)